California Gazette

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How Behavioral Economics Shapes Our Habits and Decision-Making

How Behavioral Economics Shapes Our Habits and Decision-Making

Behavioral economics has shed new light on how human behavior is shaped by psychological, social, and emotional factors. Unlike traditional economics, which assumes that people always make rational choices, behavioral economics recognizes that our decisions are often influenced by biases, habits, and the environment around us. By understanding these influences, we can better design systems that encourage positive behaviors and habits. But how exactly does behavioral economics help explain the way we form habits and